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Fifth Third/Maxus Investment Advisors is looking to boost its asset-backed allocation from roughly 3% of its $500 million taxable fixed-income portfolio to 10-15% in anticipation of a more prolonged economic downturn. James Bernard, senior fixed income portfolio manager, says he wants to sell corporates and agencies to buy ABS in order to have "real live assets backing up our debt, especially given the number of corporate credits that have balance sheet concerns in the down economy." As an intermediate buyer, he would look to four- to six-year credit-card and auto paper, sectors in which he believes he can find well-structured paper with decent prepayment lockouts. Bernard, whose purchases are usually $1-3 million in size, is not attracted to any names in particular, but he will steer clear of infrequent issuers whose paper is not as liquid. He adds that he is comfortable selling agencies because spreads have narrowed in recent months and there is still political risk associated with GSEs.

Chattanooga, Tenn-based CBL Associates Properties two weeks ago closed and tapped a new five-year, $212 million loan to fund its $1.3 billion acquisition of The Richard E. Jacobs Group's interests in 21 malls and other properties. John Foy, cfo, said the $124 million cash portion of the transaction was funded with $120 million it drew on the new loan as the remaining $92 million will be used for capital improvements. Wells Fargo led the deal and participants included U.S. Bank, FleetBoston Financial, Key Bank, and Commerce Bank-the only bank that has not previously participated on a company loan. Foy said the company's long-standing relationship with Wells Fargo drove it to choose the bank as the lead on the credit. Merrill Lynch advised on the acquisition.

Moody's Investors Service assigned a Ba3 rating to Collins & Aikman Products Co.'s new $50 million senior secured bank term loan "D" and confirmed its existing rating of Ba3 on the company's $575 million senior secured bank credit facilities. That deal includes a $250 million revolver, $100 million term loan "A", a $125 million term loan "B", and a $100 million term loan "C". Lisa Matalon, senior analyst at Moody's, pointed to the expected impact of deterioration of both the automative market and more general economic environment as factors prompting the updated ratings and negative outlook the agency has on the company.

Equant NV signed a $300 million credit facility last month for general corporate purposes. "It's for continued investment in our global network as well as operational and support systems and working capital," said Daan Heyning, treasurer. The facility matures in 2002 and has no separate tranches. He declined to reveal the pricing. The 364-day revolver provides Equant with additional resources until the closing of the proposed transaction with France Telecom and its Global One subsidiary. The global supplier of data networks, services and applications to multinational businesses is based in the Netherlands.

Emmis Communications' $1.4 billion credit is emerging as one of the strongest media deals in the market as the credit continues to trade above par. Last week a $5 million piece traded at 100 3/4, slightly higher than its previous level two weeks ago at 100 1/4. "It's a solid name with lots of cash," one trader said simply. Emmis, based in Indianapolis, Ind., owns and operates more than 20 radio stations in New York City, Los Angeles, and Chicago as well as two radio networks. It recently bought Lee Enterprises for $500 million. A company spokeswoman did not return calls seeking comment.

A $10 million piece of Harnischfeger Industries' bank debt traded up slightly last week at 42 due to the company's restructuring and rumored escape from Chapter 11 bankruptcy. "They're coming out of bankruptcy in the next couple of months," one trader said. Another discounted that reasoning. "Everybody's known that for a while," he said. "They're trying to restructure, and they did well on their numbers." Calls to the Milwaukee, Wis.-based company were not returned.

As the field of pro rata lenders thins, investment banks are resisting the pressure from borrowers to step up and fill the void, according to Corporate Financing Week, an LMW sister publication. Some investment firms would participate in commercial programs to maintain a relationship with a particular client, said Art Penn, managing director, head of global leveraged finance at UBS Warburg. However, consolidation has resulted in fewer players in the market and investment firms are not as concerned about being cut out of later deals if they decline to participate in a commercial facility.

J.P. Morgan Chase has launched syndication of a $400 million, two-year revolving credit for The Great Atlantic & Pacific Tea Company. The facility, priced at LIBOR plus 21/2%, will replace an existing $500 million, five-year facility also led by Chase Manhattan Bank. Officials at A&P declined to comment on banking arrangements. Calls to the banks were not returned by press time. A Chase spokeswoman declined to comment.

Houston-based Service Corporation International last week tapped J.P. Morgan Chase to lead a $200 million revolving credit facility for the company. Jeffrey Curtis, cfo, said the company is looking to close the single-tranche credit by the end of this month and indications thus far show that pricing is expected at LIBOR plus 3%. He declined to name other banks participating on the loan. "We are shooting for $200 million but we would settle for less or accept more," he said. Curtis declined to elaborate on whether or not he expects the credit to be oversubscribed. J.P. Morgan Chase did not return calls.

Levis Strauss signed a $1.05 billion credit facility two weeks ago and issued roughly $500 million in notes to replace the company's existing $1.6 billion facility. Eileen Van Ess, assistant treasurer, explained that the company planned to replace the $1.6 billion facility with a $1.5 billion loan, but then decided to further reduce the facility to $1.05 billion and issue roughly $500 million of notes in the bond market to diversify the company's debt.

Medford, Ore-based Lithia Motors, Inc. added $130 million to its existing credit facility with Ford Motor Credit, bumping up the total credit to $580 million. Bryan DeBoer, senior v.p., said the total revolving credit facility comprises tranches of $250 million, $150 million, $130 million, and $50 million. He declined to provide pricing on the facility. DeBoer said the company has a long-standing relationship with Ford Motor Credit as the lender specializes in providing facilities to auto retailers.